Market’s winning streak trundles on
The New Zealand sharemarket awoke from its slumber in late trading – and posted its eighth successive day of gains. The S&P/NZX 50 Index went into negative territory during the afternoon until the last half hour, closing at 13,321.99, up 21.95 points or 0.17 per cent, after reaching an intra-day low of 13,279.36.
Shane Solly, portfolio manager with Harbour Asset Managememt, said it was one of the quieter trading days, but there were some interesting developments going on behind the scenes.
“Moving into level 2 for the rest of the country outside Auckland takes away some of the earnings risks for companies. One of the things we observed during the reporting season was that companies were reluctant to give earnings guidance because they didn’t know how long the lockdown would last.
“While the companies can get on with business, this brings back the risk of the Reserve Bank hiking the official cash rate next month,” he said.
Retailer Kathmandu Holdings was one of the better performers, rising 6c or 4.26 per cent to $1.47 following an upbeat report from an Australian broker.
Solly said Kathmandu had been doing the hard yards in the background to get its business on track and there is a pathway for the reopening of its stores in Victoria and New South Wales. The broker was positive about the prospects of its Rip Curl operation.
Fellow retailers Briscoe Group increased 10c to $6.81, and The Warehouse Group was up 6c to $3.86.
Wine exporter Delegat Group climbed 50c to $14.60; and SkyCity Entertainment gained 5c to $3.39, buoyed by the re-opening of the Hamilton and Queenstown casinos in Level 2.
Established carpet maker Bremworth (formerly Cavalier Corporation) continues to receive renewed support, increasing 3c or 4 per cent to 78c. It has now risen more than 50 per cent since trading at 50c on July 30. Sky Network Television’s strong run slowed, falling 0.005c or 2.33 per cent to 21c.
It was a day for the small cap stocks.
Online personal lender Harmoney rose 10c or 4.98 per cent to $2.11; transtasman chemicals business DGL Group increased 12c or 4.67 per cent to $2.69; high-tech manufacturer Rakon gained another 2c to $1.15; and early childcare Evolve Education was up 5c to 76c.
Market leader Fisher and Paykel Healthcare was up 12c to $33.87; Chorus recovered 7c to $7.14; Ebos Group gained 19c to $35; Fletcher Building picked up 11c to $7.48; Pushpay Holdings increased 6c or 3.39 per cent to $1.83; and Comvita collected 4c to $3.74.
Port of Tauranga was down 10c to $7.20; Napier Port gained 5c to $3.29; and Marsden Maritime Holdings increased 7c to $6.54. Bluffbased South Port New Zealand climbed 20c or 2.22 per cent to $9.20, no doubt benefitting from the strong demand at the Tiwai Point smelter as the price of aluminium hits its highest level in a decade.
Freightways declined 9c to $12.85; Mainfreight shed 29c to $95.10; Synlait Milk was off 6c or 1.86 per cent to $3.17; and Turners Automotive decreased 9c or 2 per cent to $4.40. Ryman Healthcare was down 19c to $15.61 on the day it named Richard Umbers as its new chief executive.